Deals
China Billionaire Adds Proton, Lotus to Expanding Car Empire
- Geely’s Li Shufu turned around Volvo after risky 2010 takeover
- Proton seen as path to Southeast Asia’s 600 million consumers
Lotus Cars could complete Li’s ambition to create a portfolio of international brands at different price points.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Chinese billionaire Li Shufu is buying Malaysia’s unprofitable national carmaker Proton Holdings Bhd. pretty much for two reasons: access to 600 million consumers in Southeast Asia and the brand cachet of Lotus Cars.
Li’s Zhejiang Geely Holding Group, which also owns the upscale Sweden-based Volvo Cars, announced Wednesday that it will buy 49.9 percent of Proton and a 51 percent stake in Lotus Cars. The two parties are still in talks about transaction price for the stake in Proton, Syed Faisal Albar, group managing director of DRB-Hicom Bhd., which is selling the stake, said.